Arista Networks (ANET) Dips More Than Broader Market: What You Should Know

In the latest close session, Arista Networks (ANET) was down 3.88% at $124.89. This change lagged the S&P 500's 0.53% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 1%. The cloud networking company's stock has climbed by 3.01% in the past month, exceeding the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.06%.The investment community will be paying close attention to the earnings performance of Arista Networks in its upcoming release. The company is expected to report EPS of $0.75, up 15.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.37 billion, up 22.73% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.88 per share and a revenue of $8.87 billion, representing changes of +26.87% and 0%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Arista Networks possesses a Zacks Rank of #2 (Buy). With respect to valuation, Arista Networks is currently being traded at a Forward P/E ratio of 39.28. For comparison, its industry has an average Forward P/E of 23.95, which means Arista Networks is trading at a premium to the group. One should further note that ANET currently holds a PEG ratio of 1.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.45. The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 23% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arista Networks, Inc. (ANET): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks